European Open: Commodity currencies track futures markets lower

The ASX 200 index in Australia is presently trading at 7,444.70, down -45.4 points (-0.61%).

The Nikkei 225 index in Japan has dropped -448.64 points (1.64%) and now trades at 26,901.66.

The Hang Seng index in Hong Kong has dropped -289.22 points (1.31%) and is now trading at 21,791.30.

China's A50 Index is presently trading at 13,868.31, down -99.87 points (-0.71%).

The United Kingdom and Europe:

The FTSE 100 futures in the United Kingdom are now down -4 points (-0.05 percent), with the cash market expected to open at 7,583.70.

Futures on the Euro STOXX 50 are now down -6 points (-0.16%), with the cash market expected to open at 3,818.69.

The DAX futures in Germany are now down -37 points (-0.26%), with the cash market expected to open at 14,114.69.

For the second day, Asian markets were pulled down by the FOMC-induced selloff on Wall Street, with the Nikkei leading the way down and plummeting to a near 3-week low. All of the key Asian benchmarks we follow were in the red, and futures suggest another dismal start.

Market Internals (FTSE)

Our research did not fare well in yesterday's price movement. All of Tuesday's gains were reversed as prices pulled back to (and fell under) the 7575 support level. Nonetheless, it maintained above Tuesday's low and recouped around two-thirds of the day's losses, forming a hammer candle at the closing. A break of the low confirms the formation as a 1-bar bearish reversal (hanging man), whilst a break of the high confirms the formation as a bullish hammer.

• Futures in the United States: The DJI futures are now down -148 points (-0.43 percent )

• Futures on the S&P 500 are now down -53.5 points (-0.37 percent )

• Futures for the Nasdaq 100 are now down -18.25 points (-0.41 percent )

• 4249.45 on the FTSE 350 index (-0.34 percent ) 6th of April, 2022

• 265 (75.50 percent) stocks rose, while 81 (23.08 percent) fell.

Eight stocks sank to new 52-week lows, while 22 advanced to new highs.

Over the last 200 days, 34.47 percent of equities have closed above their 200-day average.

A total of 56.98 percent of stocks finished higher than their 50-day average.

7.69% of stocks ended higher than their 20-day average.

Premier Foods PLC (PFD.L) outperformed by 5.96 percent, Syncona Ltd (SYNCS.L) by 5.64 percent, and Indivior PLC by 4.02 percent (INDV.L)

Capricorn Energy PLC is a -8.57 percent underperformer (CNE.L)

Aston Martin -7.54 percent 888 Holdings PLC (AML.L) -7.51 percent Lagonda Global Holdings PLC (AML.L) -7.51 percent (888.L)

The Fed's weight continues to bear down on commodity currencies.

At the moment, we appear to be witnessing a lot of countertrend movements in the currency markets. Commodity FX has continued to retreat from highs as it becomes clear that the RBA and RBNZ are following the Fed's hawkish path, with the AUD and NZD among the weakest majors today.

AUD/USD has reversed all of this week's gains and is on the verge of forming a bearish pinbar at present levels. The week's high failed to break through the upper Keltner channel, and a quick look at lower timeframe momentum implies the week might be closed at present levels. But it doesn't rule out the possibility of a rally ahead of a lower-level breach.